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Taskforce report vindicates Labour’s approach

Published: Wed 16 Dec 2009 03:17 PM
16 December 2009 Media Statement
Taskforce report vindicates Labour’s approach
Labour Commerce spokesperson Lianne Dalziel says the Capital Market Development Taskforce’s final report vindicates Labour’s decision to set up the taskforce, but Labour would not support even the partial listing of SOEs.
“When I established the taskforce in 2008 to develop a blue print for the development of New Zealand’s financial system, I was thinking of how we could add depth and breadth to our capital markets to help firms raise funds and allow New Zealand to capture more of the gains for business growth,” Lianne Dalziel said.
“I was also thinking of Mum and Dead investors, who had seen their hard-earned savings blown in a raft of finance company failures, and how we could restore confidence to the market.
“In addressing these issues the taskforce has developed an understanding of capital markets as a system, which is a very useful perspective for addressing the barriers to capital that many of our companies, especially SMEs, face,” Lianne Dalziel said.
Lianne Dalziel said she was very impressed with the ‘pipeline’ approach to growing businesses, and would be looking at the recommendations very carefully.
David Cunliffe said he welcomed contributions the report has made to deepening and strengthening New Zealand’s domestic capital markets, thus reducing the savings gap and improving local sources of capital for business growth and innovation.
“A sustainable economic future for New Zealand means growing savings and investment to support the businesses and jobs of tomorrow. The deferral of contributions to the Super Fund and KiwiSaver cutbacks are hardly confidence-builders in this respect,” he said.
Lianne Dalziel said the taskforce had paid special attention to the need for investors to understand properly the value and risk involved in their investments. “The real challenge will be how the Government puts the recommendations into action.”
Lianne Dalziel said the fact that Labour would say no to listing SOEs should not detract from its support for the general thrust of the taskforce report.
“I am particularly impressed that the taskforce has differentiated between sophisticated investors, who can be presumed to have detailed understanding of their investment portfolios, and mum and dad investors who need to be given clear and concise information to identify what risks they are taking with their hard-earned money.
“The taskforce’s recommendations in this respect are absolutely spot on, and I hope the Government will pick up on them in its review of the Securities Act.”
ENDS

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